China Cash Squeeze Gets Tighter

SHANGHAI—China's cash crunch intensified Thursday with companies turning to Hong Kong for funds and the financial pressure triggering a sharp selloff in the bond market.

The stress that is rocking China's financial system is showing no signs of easing with short-term interest rates jumping to record highs and the central bank again refraining from adding cash to ease the pain. Analysts say authorities view it as temporary—and that it...